- Operating revenues rise 13% to €185 million
- Core vertical marketplaces revenues climb 16%
- EBITDA up 20% to €50 million
- EBITDA margins up from 25% to 27%
- Cash flow up 13% to €20million
Oslo, Norway, 15 July 2019 – Adevinta announces its second quarter and half year 2019 results.
Core verticals enjoyed a strong quarter, rising 16%, with overall revenues up 13%. Display advertising revenues remain lower than anticipated due to challenging economic conditions in key markets and by comparison with Q2 2018, when advertising was more buoyant. Initiatives taken to reverse the drop in growth have resulted in an 8% increase in Q2 2019 versus Q1 2019. Product development increased, with new features and apps rolled out across all markets.
Rolv Erik Ryssdal, CEO, commented:
“We have enjoyed a good quarter characterized by strong performances in core verticals across all our markets. We are progressing on a steady course to deliver on our strategy of strengthening our positions in the verticals.
“Softness in display advertising – resulting from a combination of global advertising industry factors and tougher economic conditions – has continued to negatively affect overall revenue growth. Initiatives taken in Q1 2019 have had some positive impact.
“Adevinta has been established as a standalone company and has been well received by all stakeholders. We are continuously improving our focus on operations, while evaluating market growth and consolidation opportunities.
“Product and technology is a priority across the portfolio, and we will continue investing to improve our competitive strengths. We are well positioned for expansion and to play a leading role in the digital marketplaces industry going forward.”
Q2 2019 Highlights
Revenues up 13% to €185 million
Revenue from verticals grew 16% across all markets
- France up 16%
- Spain up 16%
- OLX Brazil up 33% (local currency basis)
- Continued softness in display advertising
EBITDA improved to €50 million, up 20%
- Negatively affected by one-off ESOP charge of €5 million for Brazil
- EBITDA margin on a proportionate basis rose 2%-points to 27
Global Markets with another profitable quarter
- Margin expanded by 33%-points
- Investment phase losses continue to decline in Q2 to €(1.7) million (€(10.9) million in Q2 2018)
Completed two acquisitions to strengthen France
- Locasun: a holiday rental and B2C travel specialist with an extensive rental portfolio
- PayCar: P2P payments provider for second-hand vehicles with advanced payment technology
|Second quarter||(€ million)||First half-year||Full year|
|13%||163.8||184.6||Operating revenues incl JVs||359.0||314.8||644|
|20%||41.6||49.9||EBITDA incl JVs||99.6||72.1||156.2|
|25%||27%||EBITDA margin incl JVs||28%||23%||24%|
|13%||17.6||19.8||Operating cash flow incl JVs||70.8||42.8||73.9|
Adevinta invites you to an analyst and press conference at Akersgata 55, Oslo, 14 May 2019 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on Adevinta Webcast. CEO Rolv Erik Ryssdal and CFO Uvashni Raman will present at the analyst and press conference.
A recording of the presentation will be available on our website shortly after the live webcast has ended. The live webcast of the presentation will also be streamed on www.youtube.com.
A conference call with Q&A linked to the Q2 2019 numbers will take place on 15 July 2019 at 14:00 CET. The session will be held in English.
NOTE: To avoid waiting time when connecting to the call, please use the below link 5-10 minutes prior to start time, where you will be asked to type in your phone number and registration details. The Event Conferencing system will automatically call you back on the phone number you provide and place you into the event. Please note that the link will become active 15 minutes prior to the event: Link to join call: https://bit.ly/2J8bI9B
For manual dial-in, use the following number (note that this connection might take more time):
Norway: +47 2350 0187
Sweden: +46 (0) 8 5033 6546
UK: +44 (0)330 336 9401
US: +1 646-828-8195
US: +1 323-701-0223
Cassandra Lord, Director of Communications, Adevinta
Jo Christian Steigedal, Investor Relations